Economic Indicators and Business Cycle

When the economy experiences an expansion, it is most likely the case that

• GDP is increasing, unemployment is increasing, and inflation is decreasing

• GDP is decreasing, unemployment is decreasing, and inflation is increasing.

• GDP is increasing, unemployment is decreasing, and inflation is increasing

• GDP is decreasing, unemployment is decreasing, and inflation is decreasing.

GDP is an important economic measurement because it

• provides valuable data on unemployment rates.

• provides valuable data on inflation rates.

• measures the value of final goods and services produced by a country.

• measures only the exports of a country

What term is used to describe the percent of the labor force that does not have a job but is currently looking for one?

• Leading economic indicator

• Full employment

• Unemployment rate

• workforce

If GDP falls for at least 2 Quarters, it is considered what stage of the business cycle?

• Expansion

• Recession

• Prosperity

• Recovery

What term is used to describe an increase in the general price level?

• Deflation

• Monetary policy

• Stagnation

• Inflation

Which term describes the phases of expansion and contraction in an economy over time?

• Recessions

• Prosperity

• Total product oscillations

• Business cycles

Which of the following is associated with peaks in the business cycle?

• Relatively high levels of unemployment

• Relatively low levels of unemployment

• Recessions

• Both High Unemployment and Recession

"Dunder Mifflin Corporation Fires 5,000 Employees" This headline affects which economic indicator the most?

• Consumer Price Index

• Consumer Spending

• Unemployment rates

• Inflation

"Business investment in capital goods (machinery for production) rises." The headline above affects which economic indicator the most?

• Unemployment

• Consumer Price Index

• Inflation

• Gross Domestic Product (GDP)

"Prices for consumer goods down 5% this year!" This headline affects which economic indicator the most?

• Unemployment

• Consumer Price Index

• Productivity

• Gross Domestic Product (GDP)